Thiruvananthapuram: For the first time, the KSEB Limited has sought an extension of time from the State Electricity Regulatory Commission for the submission of annual revenue requirement (ARR) and expected revenue from charges (ERC), its annual financial statement. This is to take into account the new financial realities after corporatisation.
As per the KSERC (Tariff) Regulations, 2003, the power licensee has to file the ARR & ERC petition for the ensuing year not later than four months before the commencement of the financial year, which is latest by November 30 of the preceding year. The KSEB, the erstwhile licensee of the state, had been filing the ARR&ERC petition on time every year since 2003-04, the year the regulations came into force.
The state government, as per the Electricity Act, 2003, had vested the assets and liabilities of KSEB with the new entity KSEB Limited on October 31, 2013. In 2008, the assets and liabilities were vested with the state government as part of the first transfer scheme.
Along with the second transfer on October 31, 2013, which included a financial restructuring plan, many changes were incorporated in the provisional aggregate assets and liabilities and balance sheet of KSEBL as on April 1, 2012. Fixed assets were provisionally revalued based on the revenue earning potential of generation assets.
There was additional equity infusion by state government and it had also created a terminal benefit fund and Master Trust for meeting the obligation of the pension liabilities and terminal benefits.
“From that point on, these changes have a strong impact on the ARR of the KSEBL. So, before the new ARR is submitted, a detailed study has to be carried out,” a top KSEB source said.
